Q2 FY25 breakdown of Rossari’s segment-wise performance:

Home and Personal Care Products (HPPC)

• Revenues: This segment experienced 6% YoY growth in Q2 FY25, with revenues reaching 390 crores, up from 367 crores in the previous year.
• Challenges: This segment faced challenges related to softening prices in response to lower raw material costs and limited ethylene oxide (EO) availability and ethoxylation capacity.
• Strategies: Rosarri has prioritized sending products to the export market, where they are able to attain better pricing. They are also investing in increasing EO and ethoxylation capacity.

Key Takeaway: The HPPC segment is experiencing strong growth. However, there are some headwinds related to raw material costs and capacity constraints. Rosarri is actively taking steps to address these challenges.

Textile Specialty Chemicals

• Revenues: Revenues for this segment reached 84 crores, down from 96 crores last year. This was due to a combination of factors, including pricing pressures and geopolitical events impacting exports to Bangladesh and Egypt.
• Challenges: This segment is experiencing pricing pressure due to lower raw material costs. Additionally, exports to Bangladesh and Egypt have been negatively impacted by geopolitical issues, specifically the war in Ukraine and banking instability in Bangladesh.
• Strategies: Rosarri is focused on expanding its footprint in new geographies and adding sustainable products to its overseas offerings to grow this segment in 2025. They are also closely monitoring the situation in Bangladesh and Egypt.

Key Takeaway: The Textile Specialty Chemicals segment is facing challenges related to pricing and exports. Rosarri is working on new products and expanding its geographic reach to mitigate these challenges.

Animal Health and Nutrition (AHN)

• Revenues: This segment remained stable during the quarter, with revenues of 24 crores compared to 20 crores in the corresponding period last year.
• Challenges: Rosarri had anticipated higher growth in this segment. A revised strategy to focus more on specialty additives rather than feed components has impacted the pace of growth. Q2 is traditionally the weakest quarter for this segment due to the festive season in India.
• Strategies: Rosarri is taking steps to improve its infrastructure, including setting up a premix plant. They are also planning to launch new products in the therapeutic category and gut health improvers. They anticipate stronger growth in Q3 and Q4, which are traditionally the strongest quarters for AHN.

Key Takeaway: The AHN segment has not grown as fast as expected. Rosarri is making changes to its product strategy and anticipates stronger growth in the second half of the year.

Exports

• Overall Growth: Rosarri’s exports outperformed domestic sales in Q2 FY25, growing 21% YoY. For the first half of the year, exports grew 32% YoY, now making up 25% of overall sales.
• Geographic Focus: Key geographies for export growth include Europe, South America, Turkey, Vietnam, Egypt, North Africa, Bangladesh, Nepal, Sri Lanka, and the Philippines.
• Product Focus: Key sectors for export growth include home care, personal care, cosmetics, and agrochemicals.
• Challenges: One of the challenges the company is experiencing with its export business is related to higher freight costs, which they are not always able to pass on to customers.
• Strategies: Rosarri is working to negotiate better freight rates with existing customers and to build freight costs into pricing for new customers. They are also establishing a new trading entity in the UAE, Rosari Biotech Trading FZ, to expand their international presence and streamline export operations.

Key Takeaway: Exports represent a significant growth opportunity for Rosarri. They are experiencing success in several key markets and are taking steps to further expand their export operations and manage associated costs.